Korean won tumbles to five-year low amid US tariff concerns SEOUL, April 09 (AJP) - The value of South Korean won fell sharply against the U.S. dollar on Wednesday, reaching its lowest level in more than five years, as markets reacted to heightened uncertainty surrounding U.S. tariff policy. As of 9:15 a.m. the won was trading at 1,486.3 per dollar, up 13.0 won from the previous session’s closing price. The intraday spike marks the currency’s highest level since March 16, 2019, when it reached 1,492.0 during the global financial crisis. The day began with the won opening at 1,484.0, already 10.8 won higher than the previous close, before climbing further. The volatility comes ahead of the official implementation of the U.S. tariff measures, set to take effect at 1:01 p.m. Korea time. The Trump administration’s move to raise tariffs has sparked renewed trade tensions across global markets and prompted a flight from risk-sensitive assets. On Tuesday, Acting President and Prime Minister Han Duck-soo spoke by phone with U.S. President Donald Trump to discuss the tariff issue, though no clear resolution emerged. 2025-04-09 10:02:04

Samsung's profit exceeds market expectations, signaling modest rebound Samsung Electronics headquarters in Seocho-gu, Seoul/ Yonhap SEOUL, April 8 (AJP) - Samsung Electronics reported stronger-than-expected preliminary earnings for the first quarter of this year, signaling a tentative recovery for the world’s largest memory chip and smartphone maker after a prolonged slump. Operating profit for the quarter came in at 6.6 trillion won, or approximately $4.48 billion, the company said in a regulatory filing on Tuesday. While essentially flat from a year earlier — down 0.15 percent — the figure beat market expectations by more than 33 percent. Revenue rose 9.84 percent year-on-year to 79 trillion won, the second-highest quarterly revenue in the company’s history. The results surprised analysts, who had forecast an operating profit of around 4.9 trillion won, amid persistent concerns about weak demand in key markets. But strong sales of the Galaxy S25 smartphone series and resilient shipments of DRAM memory chips helped lift earnings. The first-quarter performance marked a return to growth after two straight quarters of declining profits. In the previous quarter, Samsung posted 6.49 trillion won in operating income. Stronger-than-expected demand for memory chips, particularly in China, played a key role in the rebound. A government-backed “trade-in” subsidy program boosted handset sales in the country by 15 percent year-on-year, helping to reduce chip inventories. “Samsung is likely entering a phase where it will pass through earnings in the second quarter,” said Han Dong-hee, an analyst at SK Securities. “While the Galaxy S25 momentum will dissipate and display performance will inevitably weaken during the off-season, this can be offset by rebounding memory shipments and rising DDR5 contract prices.” Analysts, however, warn that high-value semiconductor products such as high-bandwidth memory (HBM) are unlikely to contribute meaningfully to near-term revenue. Additionally, the fading impact of the S25 launch, along with possible disruptions from the U.S. tariffs, may dampen second-quarter performance. Although memory prices are showing early signs of recovery, analysts expect the gains to be moderate. “Even if mainstream memory product prices rebound, both the magnitude and duration of increases are likely to be more modest than market expectations,” one industry observer said. 2025-04-08 14:21:51

Apparel firms scramble as US tariffs hit Southeast Asian manufacturing hubs Hansae's plant in Vietnam/ Courtesy of Hansae SEOUL, April 8 (AJP) - South Korean apparel and footwear manufacturers are racing to blunt the fallout from a wave of steep tariffs announced last week by U.S. President Donald Trump, a move that threatens the global supply chains of some of Korea’s largest original equipment manufacturers. The new tariffs — imposed on key Southeast Asian economies that have become central to Korean manufacturing — include levies of 46 percent on Vietnam, 37 percent on Bangladesh and 32 percent on Indonesia. The countries are home to sprawling production operations for major Korean firms such as Youngone Trading, Hansae, and Hwaseung Enterprise. According to data from Daishin Securities, roughly 70 percent of Youngone Trading’s production is located in Bangladesh. Hansae operates half of its manufacturing out of Vietnam, while Hwaseung relies on Vietnam and Indonesia for a combined 90 percent of its output. Although tariffs are typically absorbed by the brand-name companies — such as Nike, Adidas and Gap — that contract Korean OEMs, industry sources say these global brands are beginning to share the costs with their suppliers, leaving Korean manufacturers exposed to financial strain. In response, Korean firms are urgently working to diversify both their production bases and export markets. Hansae, which depends on the U.S. for 90 percent of its revenue, is expanding operations in Central America, including Nicaragua and Guatemala, where tariff rates remain comparatively low at around 10 percent. Meanwhile, Youngone Trading and Hwaseung Enterprise are stepping up efforts to grow their presence in Europe, Japan and other Asian markets, where existing customer relationships could offer some insulation from U.S. trade policy shifts. “While companies are striving to overcome tariff shocks through production base diversification, this isn’t something individual firms can resolve alone,” said Park Young-soo, director of the Korea Fashion Industry Association. “Tax benefits and financial support measures for these companies are urgently needed.” 2025-04-08 13:47:31

S. Korea, Malaysia meet in Seoul for new round of FTA negotiations Getty Images Bank SEOUL, April 8 (AJP) - South Korea and Malaysia will convene this week in Seoul for a fresh round of negotiations aimed at finalizing a bilateral free trade agreement. Roughly 70 officials from both nations are expected to participate in the eighth formal round of talks, which will run from Tuesday through Friday. The South Korean delegation will be led by Kwon Hye-jin, the country’s chief trade negotiator, while Sumathi Balakrishnan, senior director at Malaysia’s Ministry of Investment, Trade and Industry, will head the Malaysian side. They will seek to bridge remaining gaps across 10 priority areas, including trade in goods, services, and broader economic cooperation. The push for a bilateral deal comes as both nations seek to insulate themselves from growing volatility in global trade. The ripple effects of the Trump administration’s tariff policies have led South Korea and Malaysia to pursue greater diversification of their export markets, South Korean officials said. South Korea and Malaysia currently face steep levies of 25 percent and 24 percent, respectively, on certain exports. For South Korea, the importance of Southeast Asian markets is becoming increasingly evident. Exports to the Association of Southeast Asian Nations (ASEAN) nations outpaced those to China for two consecutive months this year. In February and March, South Korea exported $9.58 billion and $10.32 billion in goods to ASEAN, compared to $9.51 billion and $10.09 billion in exports to China during the same period. “We will engage proactively in negotiations aimed at swiftly concluding a bilateral FTA with Malaysia to improve market access conditions for our businesses and help alleviate uncertainty,” said Kwon in a statement. 2025-04-08 09:52:25

Financial markets plunge as Trump tariff war rattles investors A Hana Bank branch in Seoul/ Yonhap SEOUL, April 7 (AJP) - South Korean financial markets plunged on Monday, with the benchmark KOSPI index suffering its steepest decline in years, as rising fears of new U.S. tariffs spurred a wave of foreign investor selloffs and heightened concerns over the country’s export-reliant economy. The KOSPI tumbled 5.57 percent to close at 2,328.20 — its lowest level since November 2022 — while the tech-heavy KOSDAQ dropped 5.25 percent to 651.30. Foreign investors led the rout, offloading roughly 3.3 trillion won in shares across both spot and futures markets, marking their largest single-day withdrawal since August 2021, according to data from the Korea Exchange. “Global uncertainty around a tariff war has triggered continued panic selling by foreign investors, who are rushing to secure dollar cash positions,” said Kim Seok-hwan, an analyst at Mirae Asset Securities. Investor anxiety surged, reflected in a 65 percent spike in the KOSPI 200 Volatility Index, or VKOSPI, which climbed to 44.23 — its highest reading since August of last year. Shares of Samsung Electronics dropped 5.17 percent, SK Hynix plunged 9.55 percent, and Hyundai Motor declined 6.62 percent. The South Korean won weakened significantly, falling 33.7 won to 1,467.8 per dollar in its sharpest one-day drop in nearly five years. “Despite market panic and investor concerns, Trump and White House officials are maintaining a hard-line stance on imposing tariffs,” said Lee Kyung-min, an analyst at Daishin Securities. “Federal Reserve Chair Jerome Powell’s statement that he would wait for more clarity before adjusting monetary policy also weakened market expectations for a rate cut.” 2025-04-07 17:00:30

LG Energy Solution's Arizona battery plant on track for production next year An artist's concept for LG Energy Solution's factory in Arizona/ Courtesy of LG Energy Solution SEOUL, April 7 (AJP) - LG Energy Solution's first cylindrical battery plant in the United States will begin commercial production by the end of 2026, the company said. At a recent event attended by local officials and representatives of the Arizona Chamber of Commerce, the South Korean battery manufacturer said construction of its $5.5 billion facility in Queen Creek has passed the halfway mark. “Construction of the Arizona cylindrical battery plant is more than 50 percent complete,” said Ra Hee-Kwan, president of LG Energy Solution Arizona. “We’re on track to begin limited production next year, with full-scale manufacturing to follow by year-end.” The Queen Creek site will produce 46-series cylindrical batteries — an increasingly in-demand format favored by automakers — for electric vehicle manufacturers including Tesla and Rivian Automotive. The company is also exploring additional supply agreements to meet growing demand for U.S.-made batteries. The Arizona project is a key component of LG Energy Solution’s broader push into the American market, which includes seven facilities currently operational or under construction across the country. The company expects the new plant to create approximately 1,500 jobs by 2027. The expansion comes as LG Energy Solution reports robust financial performance, buoyed in part by U.S. government incentives. On Monday, the company posted an operating profit of 374.7 billion won, or about $256 million, for the first quarter — an increase of more than 138 percent from the same period a year earlier. The gains were driven largely by federal tax credits under the Inflation Reduction Act. The company received roughly 457.7 billion won ($312 million) in Advanced Manufacturing Production Credits, up 21 percent from the previous quarter, according to a regulatory filing. Beyond its U.S. investments, LG Energy Solution is also enhancing its global manufacturing capacity. The company is expanding energy storage system production at its facilities in Holland, Mich., and Wroclaw, Poland. It has also recently acquired buildings in Michigan for Ultium Cells LLC, its joint venture with General Motors. 2025-04-07 15:39:20

US tariffs imperil South Korean auto industry Kumho Tire's factory in Vietnam/ Courtesy of Kumho Tire SEOUL, April 7 (AJP) - South Korean auto parts and tire manufacturers are confronting a wave of uncertainty after the United States imposed steep tariffs on imported automotive components, a move that industry officials warn could jeopardize the viability of hundreds of smaller firms and disrupt long-standing supply chains. The Trump administration began enforcing a 25 percent tariff on a range of foreign-made automotive components — among them tires, engines and transmissions — effective April 3. The decision has rattled South Korea’s export-dependent automotive sector, which counts the United States as its largest overseas market. South Korea exported $8.22 billion in auto parts to the U.S. last year, accounting for more than a third of the industry’s total overseas shipments. Industry estimates suggest that between 60 and 70 percent of those parts are destined for South Korean automakers’ American operations, including Hyundai Motor and Kia. Of the 691 tier-one suppliers serving the domestic auto industry, roughly 95 percent are small and medium-sized enterprises. Many of these firms are now grappling with existential challenges as the new tariffs threaten their price competitiveness in an already cutthroat market. “The tariffs could imperil not just the export of finished vehicles, but the entire ecosystem of parts suppliers,” said Lee Ho-geun, a professor of automotive engineering at Daeduk University. “If companies attempt to absorb the additional costs, they will incur significant losses. On the other hand, passing the burden onto consumers risks eroding demand.” South Korea’s three leading tire manufacturers — Hankook Tire & Technology, Kumho Tire, and Nexen Tire — are also facing stiff headwinds. The United States accounted for 24 to 30 percent of their total revenues last year. Many of their tires are produced at facilities in Southeast Asia, and some shipments could now be subject to tariffs of up to 46 percent, depending on their country of origin. In response to the tariffs, the Korea Automobile Industry Cooperative Association (KAICA) convened an emergency meeting last week, warning of potential losses in the trillions of won and urging Seoul to seek swift diplomatic engagement with Washington. Tire makers have already begun adjusting their strategies. Hankook is fast-tracking expansion at its Tennessee plant, aiming to produce up to 12 million tires annually by early next year. Kumho is reportedly considering shifting some U.S.-bound production to domestic facilities to mitigate the impact. Nexen Tire, which lacks manufacturing capacity in the United States, has fulfilled its current inventory obligations but is now weighing a strategic pivot toward European and Chinese markets. 2025-04-07 10:43:41

US halts imports from Korean salt farm over forced labor allegations U.S. Customs and Border Protection's Withhold Release Order on Taepyung Salt Farm/ Captured from CBP website SEOUL, April 7 (AJP) - The United States has blocked imports of sun-dried salt from South Korea’s largest salt producer, citing evidence of forced labor uncovered in a federal investigation. U.S. Customs and Border Protection on April 3 issued a Withhold Release Order against Taepyung Salt Farm, located in Sinan-gun, South Jeolla Province. The order, which took effect immediately, directs personnel at all U.S. ports of entry to detain any shipments of salt originating from the farm. The action follows a 2022 petition submitted by South Korean public interest groups, including the Advocates for Public Interest Law, the Research Institute of the Differently Abled Person’s Right, and Wongok Law Office. The petition urged the U.S. government to suspend imports of Korean sun-dried salt over longstanding allegations of labor abuses on salt farms. The agency said it has found what it described as multiple indicators of forced labor as defined by the International Labor Organization. These included abuse of vulnerability, deception, restricted movement, retention of identity documents, and other forms of coercion and mistreatment of workers. "The fight against forced labor is a top priority for CBP," said Pete Flores, the agency’s acting commissioner. "Products made with forced labor do not belong in the United States." CBP officials said that goods produced under such conditions pose a threat to the U.S. economy by distorting fair market competition, often enabling companies to sell goods below market value. The move marks the first time that products from a South Korean company have been subject to a Withhold Release Order under forced labor provisions. "This measure has been implemented because the Korean government and companies have failed to properly address and have neglected forced labor in salt farms for over a decade," said Kim Jong-chul, an attorney with Advocates for Public Interest Law, in a statement. Taepyung Salt Farm has not publicly responded to the allegations. 2025-04-07 09:35:45

Former Defense Minister urges resistance against Yoon impeachment decision Former President Yoon Suk Yeol (left), Former Defense Minister Kim Yong-hyun (right)/ Yonhap SEOUL, April 5 (AJP) - Former South Korean Defense Minister Kim Yong-hyun, currently imprisoned on charges of insurrection, has publicly called for resistance against the Constitutional Court's decision to impeach former President Yoon Suk Yeol. The incendiary letter was read aloud at a rally organized by the National Movement Headquarters to Establish the Republic of Korea, led by Jeon Kwang-hoon, in Gwanghwamun on Saturday, just one day after the impeachment verdict. "This is not the end. It's the beginning," Kim wrote from his cell, promoting slogans such as "RESET KOREA" and "YOON AGAIN!" that explicitly call for Yoon's return to power despite the court's ruling. Kim's message appeared to incite supporters to take action, declaring that "the judgment of the people is more powerful than the judgment of the law." His lawyer, Lee Ha-sung, encouraged rally participants to chant these slogans during the reading. "We have nowhere else to retreat. Let us fight vigorously for our descendants' future," Kim concluded in his letter, which was met with fervent responses from gathered supporters. The former defense minister has consistently released prison letters at political rallies since his detention on charges of sedition and abuse of power, drawing criticism for potentially inflaming social tensions to deflect from his own legal troubles. Former President Yoon, who was removed from office the previous day, has not yet apologized for the December martial law crisis nor indicated acceptance of the Constitutional Court's decision. Instead, Yoon issued a brief 123-character statement primarily expressing gratitude to his supporters rather than acknowledging the gravity of the impeachment. 2025-04-05 15:59:23

Pro and anti-impeachment rallies continue in Seoul despite verdict Civilians watching the news cheer on as the Constitutional Court unanimously upheld President Yoon Suk Yeol's impeachment, April 4, 2025. Yonhap SEOUL, April 5 (AJP) - Seoul's streets are set to witness contrasting demonstrations on Saturday as supporters and opponents of former President Yoon Suk Yeol's impeachment gather despite yesterday's final Constitutional Court ruling that removed him from office. The pro-impeachment BISANG Action for Yoon Out and Social Reform plans a victory march near Gyeongbok Palace with about 100,000 expected participants, while the Candleact group has announced a separate 10,000-person rally near Sungnyemun Gate. Meanwhile, the ultra-right group National Movement Headquarters to Establish the Republic of Korea, led by Jeon Kwang-hoon, will hold counter-demonstrations near Gwanghwamun Square, where organizers have registered for a turnout of 200,000 people. "We will launch civil disobedience against the Constitutional Court's unjust ruling, forging stronger solidarity and national unity," said the Liberty Unification Party in a statement released immediately after yesterday's verdict. The political divide remains palpable as the pro-impeachment faction celebrates what they consider a triumph for democratic accountability, while opponents view the court's decision as politically motivated judicial overreach. 2025-04-05 14:23:24